Check out this blog post to find out how much you can get from a PPP loan .
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What is a PPP Loan?
A PPP loan is a loan that is forgiven if you spend the money on approved expenses. You can use the loan for payroll, rent, mortgage interest, and utilities. The loan is forgiven if you spend at least 60% of it on payroll. You have to apply for forgiveness at the end of the loan period.
How Much Can I Get From a PPP Loan?
The Paycheck Protection Program (PPP) is a loan designed to help small businesses keep their employees on the payroll during the COVID-19 pandemic. The maximum loan amount is $10 million, and the loan can be used for payroll costs, mortgage interest, rent, and utilities.
Loan amounts are based on your average monthly payroll costs from the last 12 months. For most borrowers, the maximum loan amount will be 2.5 times their average monthly payroll costs. Borrowers with seasonal businesses or those who have been in business for less than one year can use a different method to calculate their loan amount.
You can find more information about how to calculate your loan amount here: [link to SBA website]
What Can I Use the Loan For?
The Paycheck Protection Program is a loan designed to help businesses keep their employees on the payroll during the COVID-19 pandemic. The loan can be used for payroll and other eligible expenses, such as rent, utilities, and interest on mortgages.
The maximum loan amount is 2.5 times your average monthly payroll costs, up to $10 million. For example, if your business has $100,000 in monthly payroll costs, you could be eligible for a loan of up to $250,000.
You will need to provide proof of your payroll costs, such as pay stubs or tax forms, when you apply for the loan. The interest rate on the loan is 1%, and the loan must be repaid within two years.
How Do I Apply?
The PPP loan application process is relatively simple. You can apply through any SBA-approved 7(a) lender, which includes most major banks. Once you’ve selected a lender, you’ll need to complete and submit a short online application.
If you’re approved, your lender will send you a promissory note and other required documents. You’ll need to sign and return these documents, and once they’re received, your loan will be funded.
What Are the Terms of the Loan?
The PPP loan has a 1% interest rate and terms of two years or ten years for loans used for real estate, equipment, or other long-term capital improvements. There is no prepayment penalty.
The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
Eligible expenses include:
-Interest on mortgages
What Happens if I Can’t Repay the Loan?
If you are not able to repay the entire loan when it comes due, you will have to pay back the loan as if it were a regular loan. This means that you will have to make monthly payments on the outstanding balance, with interest accruing on the unpaid balance.